LONDON/FRANKFURT, March 8 (Reuters) - Partners Group

is exploring options, including a sale, FOR German

renewable energy company VSB Group, six sources familiar with

the matter said.

The Swiss private equity firm has been interviewing

financial advisers in the last few weeks, the sources said,

adding that the sale process could begin in the second quarter.

A sale of VSB could reach a valuation of up to $2 billion

including debt, two of the sources said, while a third said that

value would be between $1 and $2 billion.

The sources, who requested anonymity as the matter is

confidential, cautioned that a deal is not guaranteed and is

subject to market conditions.

Partners Group declined to comment. VSB did not immediately

respond to a request for comment.

The possible sale coincides with a drop in renewable asset

values, although interest in the sector remains high as the

European Union requires 42.5% of the bloc's energy to be

renewable by 2030.

If a sale goes ahead, VSB is likely to attract interest from

infrastructure funds and utilities, two of the sources said.

Utilities and oil firms have been selling renewable assets

to sovereign wealth and infrastructure funds, which ask for

lower returns, to finance the costs of developing new projects.

Earlier this week, German-based renewable energy producer

Encavis AG said it was in talks with KKR about

interest in a potential transaction.

Partners first invested in 2020 in VSB, which employs 500

people in Germany, Italy, France, Spain, Poland, Romania,

Greece, Finland and Croatia, its website says.

Partners acquired Exus, an international renewables asset

management and development firm, in October and has decided to

sell VSB instead of merging the two, which was one of the

options, one of the sources said.